Abu Dhabi-based Metropolitan Capital Real Estate (MCRE) has announced it has almost doubled its sales registering full-year sales of AED 1.6 billion compared to 2021. Part of the Metropolitan Group, MCRE saw its average transaction value increase to AED 2.7 million an increase of 42 percent compared to 2021. Off-plan sales nearly doubled representing close to 10 percent of the entire off-plan market of freehold areas sold in Abu Dhabi while sales of secondary market properties increased 30 percent last year.

Evgeny Ratskevich, CEO of Metropolitan Capital Real Estate, said, “The Abu Dhabi real estate market has bounced back strongly over the past few years and we have seen it continue its steady momentum in 2022. The market has been historically driven by residents with up to 80% of real estate purchases made by Emiratis or residents. However, Abu Dhabi’s growing attractiveness as a safe place for families and a competitive city for business and investment has helped its appeal with international buyers.”

Last year, apartment and villa prices recorded annual growth rates of four percent on average, with some developments in Saadiyat Island and Al Raha Beach for example, increasing by eight to 10 percent, compared to the same period in 2021. Prime villa communities continued to see strong demand, with some recording close to 25 percent increase in price since 2020. New off-plan villa projects, as well as completed villas, continued to show strong growth with an emphasis on popular high-quality villa communities such as Saadiyat Island, Yas Island and Nurai Island. The lack of such properties has further fueled sales prices to continue their upward trajectory.

MCRE saw the sales of luxury properties increase by 50 percent fueled by the launches of Reem Hills and the focus on high-end property sales in Fairmont Marina Residence and other projects along with resale transactions in Nurai Island and Saadiyat Islands. Other popular areas included traditional hot spots like Yas Island and Reem Island. Apartments accounted for 30 percent of all MCRE transactions with 60 percent of the value of transactions while villas registered 70 percent of all transactions and 40 percent in terms of value.

MCRE saw most of its buyers from CIS countries, Europeans, Indian and GCC nationals with more Russians and Europeans buying off-plan. The company saw an increased trend of more investors in the 35-45 age group buying property in Abu Dhabi further reinforcing the city’s position as a family-friendly destination.

Looking ahead to this year Ratskevich, said: “We expect the market both off-plan and secondary to continue its upward trajectory this year as well. The main driver of growth will be the luxury segment. Properties worth AED 7M+, especially villas, will outperform compared to other segments while luxury apartments are also expected to do well. The affordable and mid-size segments will remain the same. The average price per sqft will increase by 5-10% which is healthy for the market. However, total handovers are expected to be around 6,000 units this year compared to 8,500 in 2022 which is further expected to drive up prices of available units.”

“We will also see several international and local developers enter the market and expect the number of new projects to be announced to be almost double that of 2022. Growth will be sustainable and we expect a significant increase in sales volume by 20 to 50%,” he added. Last year, the biggest transaction from MCRE was the 10,750 sqft. villa in Nurai Island which was sold for AED 45 million and several off-plan villas for AED 20 million in Reem Hills and a number of transactions above AED 12 million in Mamsha Saadiyat.